Guinea Insurance grows investment income by 50.5%
Guinea Insurance Plc has said its investment income rose by 50.5 per cent in the 2019 financial year.
In a statement on Wednesday entitled ‘Guinea Insurance holds virtual AGM; grows investment income by 50.5 per cent in 2019,’ the Chairman, Guinea Insurance, Godson Ugochukwu, disclosed this during the company’s 62nd and first virtual annual general meeting.
While presenting the 2019 annual report to the shareholders, he stated that premium payments for the year decreased significantly because in most cases, policies were not renewed due to economic challenges.
He, however, said, “Due to operational efficiency in terms of people, processes and technology, investment income for the period under review increased considerably by 50.5 per cent, from N139m in 2018 to N210m in 2019.
“Operational expense of N868.6m was efficiently managed as it resulted in a savings of about three per cent when compared to N904m reported in 2018.”
The chairman said the company recorded modest earnings as gross premium written stood at N1.29bn in 2019, as against N1.24bn in 2018, representing an increase of 4.02 per cent.
Gross premium income, he noted, decreased by 2.05 per cent from N1.20bn in 2018 to N1.17bn in 2019, while net premium income also decreased slightly by 0.27 per cent from N904.9m in 2018 to N902.4m in 2019.
He spoke on steps taken by the company to meet up with the recapitalisation exercise of the National Insurance Commission and to beat the December 31, 2020 and September 30, 2021 deadlines respectively.
Godson stated, “We are sure not to be left behind, discussions are ongoing and our preparedness has reached an advanced stage but could not be discussed prematurely.
“We are also looking the way of merger and the company is in discussion with core investors.”
The Managing Director/Chief Executive Officer, Guinea Insurance, Ademola Abidogun, said the company would identify opportunities amidst the COVID-19 pandemic, and continually leverage Information Communication Technology.